Colony Bankcorp, Inc. Announces Second Quarter Results

FITZGERALD, Ga., July 18, 2017 (GLOBE NEWSWIRE) — Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $2,433,000, or $0.28 per diluted share for the second quarter of 2017 compared to $1,761,000, or $0.21 per diluted share for the comparable 2016 period, while net income available to shareholders for the six month period ended June 30, 2017 was $4,339,000, or $0.50 per diluted share compared to $3,417,000, or $0.40 per share for the comparable 2016 period.  This increase of 26.98 percent in net income for the comparable six month period was primarily driven by an increase in net interest income and noninterest income and a reduction in preferred stock dividends and loan loss provision.  “We are extremely pleased to report the progress of Colony.  In addition to the earnings reported, other quarterly highlights included total loan growth of $15.2 million and a reduction in nonperforming assets of $4.45 million,” said Ed Loomis, President and Chief Executive Officer.  “After several years of nominal loan growth, we have realized a modest pace of loan growth for the first half of 2017.  We are cautiously optimistic that the economic recovery will offer more opportunities to expand our loan portfolio and further enhance shareholder value.”

Capital

Colony continues to maintain a strong regulatory capital position to be categorized as “well-capitalized” by regulatory benchmarks.  At June 30, 2017, the Company’s tier one leverage ratio, tier one ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.72 percent, 14.33 percent,15.32 percent and 11.44 percent, respectively, compared to 9.47 percent, 14.28 percent, 15.39 percent  and 11.34 percent, respectively, at March 31, 2017.  The Company’s capital ratios were all in excess of regulatory minimums required to be classified as “well-capitalized.”

Net Interest Margin

During the second quarter of 2017, the Company reported net interest income of $9.82 million and a net interest margin of 3.49 percent compared to $9.53 million and 3.53 percent, respectively, for second quarter 2016, while net interest income for first half 2017 was $19.28 million and a net interest margin of 3.42 percent compared to $18.98 million and 3.50 percent, respectively, for first half 2016.  First quarter 2017 net interest margin was 3.35 percent, thus a significant increase in net interest margin this quarter.  This was attributable to increased loan balances, decreased lower yielding overnight funds and bond investments and increased earning asset yields due to recent Federal Reserve rate hikes.  As we shift more dollars out of lower yielding investments into higher yielding loans, we should continue to see net interest margin improvement.

Asset Quality

Asset quality reflects significant improvement as we “clean up” the balance sheet.  Substandard assets that include non-performing assets totaled $30.68 million at June 30, 2017 compared to $33.23 million and $42.56 million, respectively, at December 31, 2016 and June 30, 2016.  Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 23.77 percent, 25.67 percent and 31.12 percent, respectively, at June 30, 2017, December 31, 2016 and June 30, 2016.  Non-performing assets declined from the previous quarter end to $12.70 million or 1.63 percent of total loans and other real estate owned as of June 30, 2017.  This compares to $18.79 million or 2.47 percent and $23.33 million or 3.01 percent, respectively, as of December 31, 2016 and June 30, 2016.

Other real estate (“OREO”) totaled $4.53 million at June 30, 2017 compared to $6.44 million and $10.18 million, respectively, at December 31, 2016 and June 30, 2016.   Though these levels remain at an elevated level, we continue to work diligently to dispose these properties at fair value.  There are several contracts that we anticipate closing in the near future to further reduce our OREO holdings.

In the second quarter of 2017 net charge-offs were $821 thousand, or 0.11 percent of average loans as compared to net charge-offs of $513 thousand, or 0.07 percent of average loans in second quarter 2016, while first half 2017 net charge-offs (recoveries) were $1,215 thousand, or 0.16 percent of average loans compared to ($78) thousand, or (0.01) percent of average loans for the comparable 2016 period.  The loan loss reserve was $8.04 million or 1.04 percent of total loans on June 30, 2017 compared to $8.92 million or 1.18 percent and $9.39 million or 1.23 percent, respectively, at December 31, 2016 and June 30, 2016.  Loan loss reserve methodology resulted in no loan loss provision for three months ended June 30, 2017  compared to $354 thousand for the comparable 2016 period, while first half 2017 provision for loan losses was $335 thousand compared to $708 thousand for the comparable 2016 period.

Noninterest Income

Total noninterest income increased in the comparable periods as noninterest income for six months ended June 30, 2017 was $4.79 million compared to $4.52 million in the comparable 2016 period, or an increase of 5.97 percent.  Secondary mortgage fee income increased $135 thousand or 53.36 percent, service charges on deposits increased $89 thousand or 4.33 percent and debit card interchange fees increased $102 thousand or 8.40 percent to primarily account for the increase.

Noninterest Expense

Total noninterest expense increased in the comparable periods as noninterest expense for six months ended June 30, 2017 was $17.03 million compared to $16.59 million for the comparable 2016 period, or an increase of 2.65 percent.  Salaries and employee benefit expenses increased 6.22 percent, occupancy expense was relatively flat and other noninterest expense decreased 2.45 percent for the comparable periods.  The efficiency ratio improved slightly at 70.52 percent for six months ended June 30, 2017 compared to 70.97 percent for the comparable 2016 period.   The company continues to explore opportunities to improve its’ operating efficiency.

Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that consists of one operating subsidiary, Colony Bank.  Colony Bank conducts a general full service commercial, consumer and mortgage banking business through twenty-six offices located in the central, southern and coastal Georgia cities of Albany, Ashburn, Broxton, Centerville, Columbus, Cordele, Douglas, Eastman, Fitzgerald, Leesburg, Moultrie, Quitman, Rochelle, Savannah, Soperton, Statesboro, Sylvester, Thomaston, Tifton, Valdosta and Warner Robins, Georgia.

Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq Global Market under the symbol “CBAN”.

Certain statements contained in the preceding release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified.  In addition, certain statements may be contained in the Company’s future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act.  Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements.  Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements.  Forward-looking statements speak only as of the date on which such statements are made.  The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.    Readers are cautioned not to place undue reliance on these forward-looking statements.

           
Consolidated Balance Sheets Colony Bankcorp, Inc.          
(in thousands)          
           
  June 30, 2017   December 31, 2016   June 30, 2016
  (unaudited)   (audited)   (unaudited)
ASSETS          
Cash and Cash Equivalents          
Cash and Due from Banks $ 19,071     $ 28,822     $ 16,188  
Interest-Bearing Deposits   10,988       46,345       1,464  
Investment Securities          
Available for Sale, at Fair Value   337,710       323,658       307,926  
Federal Home Loan Bank Stock, at Cost   3,255       3,010       2,755  
Loans   775,566       754,283       764,209  
Allowance for Loan Losses   (8,043 )     (8,923 )     (9,390 )
Unearned Interest and Fees   (454 )     (361 )     (382 )
    767,069       744,999       754,437  
Premises and Equipment   27,654       27,969       27,386  
Other Real Estate   4,525       6,439       10,178  
Other Intangible Assets   63       81       98  
Other Assets   28,114       29,119       26,595  
Total Assets $ 1,198,449     $ 1,210,442     $ 1,147,027  
           
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Deposits          
Noninterest-Bearing $ 162,928     $ 159,059     $ 134,662  
Interest-Bearing   863,610       885,298       841,905  
    1,026,538       1,044,357       976,567  
Borrowed Money          
Subordinated Debentures   24,229       24,229       24,229  
Other Borrowed Money   56,000       46,000       40,000  
    80,229       70,229       64,229  
           
Other Liabilities   2,690       2,468       2,766  
           
Stockholders’ Equity          
Preferred Stock, Stated Value $1,000 a Share;          
Authorized 10,000,000 Shares, Issued 0 Shares          
as of June 30, 2017, 9,360 as of Dec. 31, 2016 and          
18,021 as of June 30, 2016, Respectively         9,360       18,021  
Common Stock, Par Value $1 a share; Authorized          
20,000,000 Shares, Issued 8,439,258 Shares as of          
June 30, 2017, Dec. 31, 2016 and June 30, 2016          
Respectively   8,439       8,439       8,439  
Paid in Capital   29,145       29,145       29,145  
Retained Earnings   55,383       51,466       47,702  
Accumulated Other Comprehensive Loss, Net of Tax   (3,975 )     (5,022 )     158  
    88,992       93,388       103,465  
Total Liabilities and Stockholders’ Equity $ 1,198,449     $ 1,210,442     $ 1,147,027  
                       

 

Consolidated Statements of Income Colony Bankcorp, Inc.        
(in thousands except per share data)        
         
  Quarter   Year-to-Date  
  Three Months Ended   Six Months Ended  
  6/30/2017   6/30/2016   6/30/2017   6/30/2016  
  (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Interest Income                
Loans, Including Fees $ 9,733   $ 9,693   $ 19,130   $ 19,325  
Deposits with Other Banks   34     23     114     61  
Investment Securities                
U. S. Government Agencies   1,685     1,359     3,248     2,712  
State, County and Municipal   30     33     60     67  
Corporate Debt   21         36      
Dividends on Other Investments   35     33     71     65  
    11,538     11,141     22,659     22,230  
Interest Expense                
Deposits   1,177     1,189     2,368     2,393  
Federal Funds Purchased   3         3      
Borrowed Money   542     427     1,010     856  
    1,722     1,616     3,381     3,249  
Net Interest Income   9,816     9,525     19,278     18,981  
Provision for Loan Losses       354     335     708  
Net Interest Income After Provision for Loan Losses   9,816     9,171     18,943     18,273  
                 
Noninterest Income                
Service Charges on Deposits   1,091     1,055     2,146     2,057  
Other Service Charges, Commissions and Fees   772     565     1,559     1,269  
Mortgage Fee Income   202     153     388     253  
Securities Gains (Losses)       127         129  
Other   329     452     701     816  
    2,394     2,352     4,794     4,524  
Noninterest Expense                
Salaries and Employee Benefits   4,880     4,625     9,665     9,099  
Occupancy and Equipment   991     978     1,951     1,942  
Other   2,749     2,751     5,412     5,548  
    8,620     8,354     17,028     16,589  
                 
Income Before Income Taxes   3,590     3,169     6,709     6,208  
Income Taxes   1,157     1,002     2,159     1,980  
Net Income   2,433     2,167     4,550     4,228  
                 
Preferred Stock Dividends       406     211     811  
                 
Net Income Available to Common Shareholders $ 2,433   $ 1,761   $ 4,339   $ 3,417  
Net Income Per Share of Common Stock                
Basic $ 0.29   $ 0.21   $ 0.51   $ 0.40  
Diluted $ 0.28   $ 0.21   $ 0.50   $ 0.40  
Cash Dividends Declared Per Share $ 0.025       $ 0.050      
Weighted Average Basic Shares Outstanding   8,439,258     8,439,258     8,439,258     8,439,258  
Weighted Average Diluted Shares Outstanding   8,630,207     8,497,618     8,632,465     8,490,540  
                         

 

COLONY BANKCORP, INC
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
                 
  QUARTER ENDED   YEAR-TO-DATE  
EARNINGS SUMMARY 6/30/2017   6/30/2016   6/30/2017   6/30/2016  
Net Interest Income $ 9,816     $ 9,525     $ 19,278     $ 18,981    
Provision for Loan Losses         354       335       708    
Non-interest Income   2,394       2,352       4,794       4,524    
Non-interest Expense   8,620       8,354       17,028       16,589    
Income Taxes   1,157       1,002       2,159       1,980    
Net Income   2,433       2,167       4,550       4,228    
Preferred Stock Dividend         406       211       811    
Net Income Available to                
Common Shareholders   2,433       1,761       4,339       3,417    
                                 
  QUARTER ENDED   YEAR-TO-DATE  
PER COMMON SHARE SUMMARY 6/30/2017   6/30/2016   6/30/2017   6/30/2016  
Common Shares Outstanding   8,439,258       8,439,258       8,439,258       8,439,258    
Weighted Average Basic Shares   8,439,258       8,439,258       8,439,258       8,439,258    
Weighted Average Diluted Shares   8,630,207       8,497,618       8,632,465       8,490,540    
Earnings Per Basic Share (b) $0.29     $0.21     $0.51     $0.40    
Earnings Per Diluted Share (b) $0.28     $0.21     $0.50     $0.40    
Cash Dividends Declared Per Share $0.025           $0.050          
Common Book Value Per Share $10.55     $10.12     $10.55     $10.12    
Tangible Common Book Value Per Share $10.54     $10.11     $10.54     $10.11    
                                 
  QUARTER ENDED   YEAR-TO-DATE  
OPERATING RATIOS (1) 6/30/2017   6/30/2016   6/30/2017   6/30/2016  
Net Interest Margin (a)   3.49 %     3.53 %     3.42 %     3.50 %  
Return on Average Assets (b)   0.81 %     0.61 %     0.72 %     0.59 %  
Return on Average Total Equity (b)   11.10 %     6.99 %     9.56 %     6.87 %  
Efficiency (c)   70.37 %     71.10 %     70.52 %     70.97 %  
                                 

(1) Annualized
(a) Computed using fully taxable-equivalent net income
(b) Computed using net income available to shareholders
(c) Computed by dividing non-interest expense by the sum of fully taxable-
     equivalent net interest income and non-interest income and excluding
     security gains/losses.

     
    QUARTER ENDED
ENDING BALANCES   6/30/2017   6/30/2016
Total Assets   $ 1,198,449     $ 1,147,027  
Loans, Net of Reserves     767,069       754,437  
Allowance for Loan Losses     8,043       9,390  
Intangible Assets     63       98  
Deposits     1,026,538       976,567  
Common Shareholders’ Equity     88,992       85,444  
Common Equity to Total Assets     7.43 %     7.45 %
Total Equity     88,992       103,465  
Total Equity to Total Assets     7.43 %     9.02 %
                 

 

    QUARTER ENDED   YEAR-TO-DATE  
AVERAGE BALANCES   6/30/2017   6/30/2016   6/30/2017   6/30/2016  
Total Assets   $ 1,194,260     $ 1,156,944     $ 1,197,473     $ 1,161,051    
Loans, Net of Reserves     756,116       746,780       748,205       745,008    
Deposits     1,026,729       988,743       1,030,043       994,018    
Common Shareholders’ Equity     87,681       82,704       86,269       81,439    
Total Equity     87,681       100,725       90,819       99,460    
                   
  QUARTER ENDED   YEAR-TO-DATE  
ASSET QUALITY   6/30/2017   6/30/2016   6/30/2017   6/30/2016  
Nonperforming Loans   $ 8,176     $ 13,149     $ 8,176     $ 13,149    
Nonperforming Assets     12,701       23,327       12,701       23,327    
Substandard Assets     30,684       42,557       30,684       42,557    
Net Loan Chg-offs (Recoveries)     821       513       1,215       (78 )  
Reserve for Loan Loss to Total Loans     1.04 %     1.23 %     1.04 %     1.23 %  
Reserve for Loan Loss to Non- performing Loans   98.37 %     71.41 %     98.37 %     71.41 %  
Reserve for Loan Loss to Non-performing Assets   63.33 %     40.25 %     63.33 %     40.25 %  
Net Loan Chg-offs (Recoveries)    
to Avg. Total Loans     0.11 %     0.07 %     0.16 %     (0.01 )%
Nonperforming Loans to Total Loans     1.05 %     1.72 %     1.05 %     1.72 %  
Nonperforming Assets to Total Assets     1.06 %     2.03 %     1.06 %     2.03 %  
Nonperforming Assets to Total Loans                  
And Other Real Estate     1.63 %     3.01 %     1.63 %     3.01 %  
Substandard Assets to Tier One Capital                  
and Allowance for Loan Losses     23.77 %     31.12 %     23.77 %     31.12 %  
                   

 

Quarterly Comparative Data (in thousands, except per share data)        
    2Q2017     1Q2017     4Q2016     3Q2016     2Q2016    
Assets $ 1,198,449   $ 1,208,765   $ 1,210,442   $ 1,152,817   $ 1,147,027    
Loans   767,069     751,056     744,999     766,532     754,437    
Deposits   1,026,538     1,044,231     1,044,357     978,500     976,567    
Common Shareholders’ Equity   88,992     85,861     84,028     86,375     85,444    
Total Equity   88,992     85,861     93,388     100,735     103,465    
Net Income   2,433     2,117     2,187     2,258     2,167    
Net Income Available to            
Common Shareholders   2,433     1,906     1,883     1,880     1,761    
Net Income Per Basic Share   0.29     0.23     0.22     0.22     0.21    
             
             
Key Performance Ratios   2Q2017     1Q2017     4Q2016     3Q2016     2Q2016    
Return on Average Assets (1)   0.81 %   0.63 %   0.64 %   0.65 %   0.61 %  
Return on Average Total Equity (1)   11.10 %   8.11 %   7.60 %   7.35 %   6.99 %  
Common Equity to Total Assets   7.43 %   7.10 %   6.94 %   7.49 %   7.45 %  
Total Equity to Total Assets   7.43 %   7.10 %   7.71 %   8.74 %   9.02 %  
Net Interest Margin   3.49 %   3.35 %   3.48 %   3.56 %   3.53 %  
             
(1) Computed using net income available to shareholders        
             

CONTACT: Contact:
Terry L. Hester
Chief Financial Officer
(229) 426-6000 (Ext 6002)